Personal Finance & Money Asked on August 10, 2021
My Situation
I’m Canadian and I took out student loans while studying in Canada. I graduated and started working right away. I have a student loan balance of approximately $29K.
I moved abroad to Ireland. While I don’t know if my move is going to be permanent, it will likely be 10+ years as my spouse is Irish. I need to keep paying my student loans in Canada because my mother is a co-signer of my loans and if I don’t pay, they will go after her for the balance.
My Problem
The National Student Loans Bureau does not accept international payments through foreign institutions. This means I either have to send them bank drafts which have a fee of €7 per draft each month or I have to send the money to my mother’s bank account in Canada for a fee of €15 per transaction.
These extra fees and hassle are making it harder to pay a small extra bit here and there. e.g. if I have €13 hanging around, I can’t just throw it on the loan as sending money overseas is cumbersome.
The interest on my loan has always been very low. A part of it has 0% interest and the rest has 2.45% interest. Currently, there is an interest freeze on the loan.
My options are:
The Euro is worth more than the Canadian dollar but sometimes the FX exchange has a fee as well and the exchange fluctuates throughout the year.
What do you think is more efficient and economical?
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